SCM & OPE MGMT

Supply chain network design decisions include the location of manufacturing, storage, or transportation-related facilities and the allocation of capacity and roles to each facility.

• TRUE

• FALSE

Decisions concerning the role of each facility are significant because they determine the amount of flexibility the supply chain has in changing the way it meets demand.

• TRUE

• FALSE

Decisions concerning the role of each facility are significant because they determine the amount of rigidity the supply chain has in changing the way it meets demand.

• TRUE

• FALSE

Capacity allocation decisions have a significant impact on supply chain performance because they tend to stay in place for several years.

• TRUE

• FALSE

Firms focusing on cost leadership tend to find the lowest cost location for their manufacturing facilities, but only if that means locating very far from the markets they serve.

• TRUE

• FALSE

Firms focusing on responsiveness tend to locate facilities closer to the market and may select a high-cost location if this choice allows the firm to quickly react to changing market needs.

• TRUE

• FALSE

A firm may increase the number of facilities beyond the point that minimizes total logistics cost to improve the response time to its customers.

• TRUE

• FALSE

Supply chain network design decisions include

• only the location of manufacturing, storage, or transportation-related facilities.

• only the allocation of capacity and roles to each facility.

• both the location of manufacturing, storage, or transportation-related facilities and the allocation of capacity and roles to each facility.

• neither the location of manufacturing, storage, or transportation-related facilities nor the allocation of capacity and roles to each facility.

Capacity allocation decisions have a significant impact on supply chain performance because

• capacity decisions tend to be permanent.

• capacity decisions tend to be changed frequently.

• Capacity decisions do not tend to stay in place for several years.

• capacity decisions tend to stay in place for several years.

Activity times for a project are estimated by all but which of the following methods?

• the use of dowsing rods.

• managerial opinions based on similar prior experiences

• statistical methods based on actual past experience

• estimates using learning curve models to improve replications and estimate accuracy